Issue: 1244
· Amazon voiced concerns about
Anthropic AI models before US government's crackdown?.
· India’s EV expansion kick-off
June 15 with 16 rollouts vs 7 ICE models.
· Sebi eyes five-day FPI
onboarding timeline through end-to-end digitisation.
· FPIs pull out Rs.62,800 crore
from Indian equities in first fortnight of June.
· UPI goes live at Eiffel Tower
and French airports as India-France digital ties strengthen.
Modi, Macron hold bilateral
talks in France; discuss AI, trade, infra: Prime Minister Narendra Modi
on Sunday held discussions with French President Emmanuel Macron on a wide
range of areas, including AI, startups, trade, infrastructure, mobility and
health, the Ministry of External Affairs said. The two of them also exchanged
views on key international and regional issues, it said. Modi landed in the
French Mediterranean city last night and inaugurated the 'Bharat Innovates'
event with Macron. The leaders discussed areas
including innovation, trade & investment, sustainability, security, culture
and people to people ties.” “The meeting resulted in several outcomes in areas
of innovation & AI, science & space, startups & fintech, trade
& infrastructure, mobility and health among others.
(Moneycontrol)
World Bank cuts global
growth forecast to 2.5% as West Asia conflict triggers energy shock: The World Bank has lowered its
global growth forecast for 2026 to 2.5 per cent, warning that the conflict in
the Middle East has triggered a fresh shock to the global economy by disrupting
energy markets, fuelling inflation and weakening growth prospects across much
of the world. In its latest 'Global Economic Prospects' report released in June
2026, the World Bank said, "The global economy is facing another major
shock. The conflict in the Middle East has triggered sharp increases in energy
prices, renewed inflationary pressures, and fueled expectations of tighter
monetary policy." The multilateral lender projected global growth to slow
from 2.9 per cent in 2025 to 2.5 per cent in 2026, calling it "the lowest
rate since the COVID-19 pandemic.".
(Business Line)
India remains Russia's No.
2 oil buyer, imports jump 21% in May: India remained the world's
second-largest buyer of Russian fossil fuels in May, importing an estimated
€5.8 billion ($6.7 billion) worth of Russian hydrocarbons as refiners increased
crude purchases from Moscow, according to a report by the Centre for Research on
Energy and Clean Air (CREA). The report said crude oil accounted for about 83%
of India's imports from Russia during the month, valued at €4.8 billion. Oil
products and coal imports were valued at €550 million and €429 million,
respectively.
(Business Today)
LIC targets stronger market
leadership as it approaches its platinum jubilee: LIC CEO R Doraiswamy stated
the corporation will maintain its leadership in the life insurance sector and
contribute to national development as it approaches its platinum jubilee. With
a nearly 60% market share and substantial assets, LIC's growth is intertwined
with India's economic progress, aiming to support the nation's 'Viksit Bharat'
vision. Insurance behemoth LIC alone
commands close to 60 per cent market share in the life insurance segment and
manages assets of over Rs 57 lakh crore. It has real estate properties valued
at around Rs 60,000 crore.
(Economic Times)
RBL Bank taps HDFC veteran
Bhavin Lakhpatwala as CFO: RBL Bank has appointed Bhavin
Lakhpatwala as its new Chief Financial Officer. Lakhpatwala joins from HDFC
Bank, bringing over 25 years of finance experience. This appointment fills a
vacant position and comes as Emirates NBD moves to acquire a controlling stake.
The new CFO is expected to guide the bank through its ownership transition and
future growth phase.
(Economic Times)
Banks seek RBI nod on
Guarantee Rule to boost NRI deposit inflows: Banks are urging the RBI to
clarify regulations for the new FCNR deposit scheme, aiming to attract diaspora
funds. They seek a tweak in wording to allow Non-Resident Indians to leverage
multiple times for investments, crucial for the scheme's success in arresting
the rupee's slide.
(Economic Times)
Risks cloud hover over
microfinance: The
Reserve Bank of India, too, raised concerns over higher inflation due to low
average rainfall and supply chain disruptions due to geopolitical conflicts.
The microfinance market, meanwhile, turned the corner with the fourth quarter showing
Rs 77,524 crore in loan disbursement, the highest in the last eight quarters.
The sector's asset quality stress also subsided with the share of the portfolio
which remained unpaid for 31 to 180 days being at 2%, as of end-March, compared
with 6.3% a year ago.
(Economic Times)
Jio Platforms ranks as the
only Indian company in global patent law treaty: Reliance Industrries’ Jio Platforms ranked in the
global top 20 in the Patent Co-operation Treaty (PCT) rankings for 2026
released by the World Intellectual Property Organisation. This places Jio among
an elite group of global technology leaders like Huawei, Qualcomm, Google,
Apple, etc and establishes India-origin innovation in the global technology
creation landscape. Jio Platforms has filed 6,817 patents cumulatively as of
March 31, 2026 and is developing sunrise technologies for the next wave of
digital infrastructure including 5G/6G Radio, 5G/6G Core, satellite
communications and JioBrain.
(Business Line)
Nitin Gadkari signs 100%
ethanol fuel rules: India to cut $250 billion import bill as Maruti, Hero,
Toyota launch flex-fuel vehicles: Union Minister for Road Transport and Highways
Nitin Gadkari, on Saturday (June 13), announced that India has given full legal
recognition to 100 per cent ethanol blend fuel—a move that will allow vehicles
to run entirely on ethanol and is expected to drastically reduce the country’s
dependence on fossil fuel imports. Gadkari said, “the approval would enable
ethanol to emerge as a “viable alternative to petrol,” helping India lower its
burden of Rs 22 lakh crore in annual fossil fuel imports”. He was speaking at a
press conference marking 12 years of Prime Minister Narendra Modi’s leadership.
Ethanol blending in gasoline has evolved significantly over the years, starting
from low-level blends of up to 5–10% in many countries, gradually increasing to
20% (E20) in several markets as governments pushed for renewable fuel adoption.
More recently, specialised high-ethanol fuels like E85 (85% ethanol) have
emerged in countries with strong flex-fuel vehicle programs, particularly in
Brazil and parts of the United States.
(Business Line)
Mcap of 8 most
valued firms surges by ?1.90 trn, ICICI Bank shines: The combined market valuation of eight of
the top-10 most valued firms surged by Rs 1.90 trillion last week, with ICICI
Bank stealing the show, in tandem with a rally in equities. Last week, the BSE
benchmark Sensex jumped 1,284.61 points, or 1.73 per cent, and the NSE Nifty
surged 256.2 points, or 1 per cent. From the top-10 pack, Reliance
Industries, HDFC Bank, Bharti Airtel, ICICI Bank, State Bank of India, Bajaj
Finance, Larsen & Toubro and Hindustan Unilever were the winners, while
Tata Consultancy Services (TCS) and Life Insurance Corporation of India (LIC)
faced erosion from their market capitalisation (mcap).
(Business Standard)
Centre opens Portfolio
Investment Route to more Indians living abroad: The government has widened the
scope of foreign participation in equity markets by allowing all individuals
residing outside the country to invest in listed Indian companies under the
portfolio investment route, according to a Finance Ministry notification. The
changes, notified through the Foreign Exchange Management (Non-Debt Instruments)
Rules, 2026, amend the existing FEMA framework by replacing the narrower
category of NRIs and OCIs with the wider classification of "individual
person resident outside India." The amendment effectively opens the
portfolio investment route to foreign individuals beyond the NRI and OCI
community, potentially expanding the pool of overseas investors eligible to
participate in Indian capital markets. Under the revised rules,
eligible overseas individuals may purchase, sell or transfer equity instruments
of listed Indian companies on a repatriation basis through recognised stock
exchanges and authorised channels. Transfers can also take place through sale
or gift, subject to conditions prescribed under the regulations.
(Moneycontrol)
FSSAI cracks down on misleading
brand names and claims: In a crackdown on violations
of labelling norms, the Food Safety and Standards Authority of India (FSSAI)
has issued notices to several food companies for misleading brand names, trade
names, and product claims. The food regulator has issued notices to these
players stating that they are in violation of provisions of the Food Safety and
Standards Act 2006. The brands include Healthy Master, Neuherbs True Vitamin,
PLAN B, The Health Factory, Troovy, Healthy Choice, Emami’s Healthy & Tasty
and Health Aid. Notices were also sent to Organic Wisdom, Shine Organic, Two
Brothers Organic Farms, Storia, World of Organic and Iota Water.
(Business Line)
Sebi to issue guidelines on
responsible use of AI in capital markets: India's market regulator,
SEBI, is creating rules for artificial intelligence in financial markets. SEBI
chief Tuhin Kanta Pandey announced this plan. AI can help with surveillance and
fraud detection. However, it also poses risks like bias and data protection issues.
SEBI will issue guidelines for responsible AI use. The regulator will also
consider international recommendations.
(Economic Times)
PRICE ELASTICITY OF DEMAND
·
Price
elasticity of demand is a measurement of the change in the demand for a product
as a result of a change in its price. If a price change creates a large change
in demand, that is known as elastic demand. If a price change creates a small
change in demand, that is an inelastic demand.
· A good or service is considered perfectly elastic if
the price elasticity is infinite, meaning demand changes substantially even
with minimal price change.
· If price elasticity is greater than 1, the good is
elastic; if less than 1, it is inelastic.
· If a good’s price elasticity is 0, there is no
amount of price change that produces a change in demand, and it is perfectly
inelastic.
· If a price change leads to an equal percentage
change in demand, the price elasticity is exactly 1, known as unitary elasticity.
· If there are no good substitutes and the product is
necessary, demand won’t change when the price goes up, making it inelastic.
RBI KEY RATES
Repo
Rate: 5.25%
SDF:
5.00%
MSF
/Bank Rate: 5.50%
CRR:
3.00%
SLR:
18.00%
FOREX RATES (RBI REF. RATE)
INR
/ 1 USD : 95.3825
INR
/ 1 GBP : 127.8367
INR
/ 1 EUR : 110.3607
INR
/100 JPY: 59.5000
EQUITY INDEX
Sensex:
75527.95 (+1695.40)
NIFTY:
23622.90 (+461.30)
Bnk NIFTY: 56814.80 (+1638.05)
Historical
events: June 15 holds
deep historical significance globally and in India. In India, it marks the
pivotal 1947 acceptance of the partition plan. Globally, 1752 saw Benjamin
Franklin prove lightning is electricity, and 2001 marked the establishment of
the Shanghai Cooperation Organisation. This day in 1908: The Calcutta Stock
Exchange Association was established and in 1964: The Group of 77 (G-77)
developing nations was formed at the UN in Geneva.
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